Strategic Innovation Management for a Competitive Advantage
Planning For Growth Action Coach
1. Planning for Growth: Building the Business in Core Adjacencies Concepts from the book Beyond the Core by Chris Zook Presented by Kevan Woodson ActionCOACH
2. New Products Adjacencies or Opportunities can assume many forms New Markets What is an Adjacency? New Customers New Channels New Value Chain Activities
3. New Products that Address Different Customer Needs Than Needs Addressed in the Core New to the World I-Pod Evista – a new drug Plastic Asphalt PC Variations of Existing Products I-Touch Viagra Ceramics Coal Tar Kindle What is an Adjacency?
4. New Markets Relative to Core Markets New Geographies Wal-Mart in China IKEA in the US Guiness in the US UPS Domestic China Service New Industries /Applications PC Repair by Fedex Real Estate by McD Fast Food by Pepsi Clothing by Harley What is an Adjacency?
5. New Customers Relative to Core Markets B2C Haines Underwear for women Microsoft OS for less affluent consumers Yoplait Yogurt for kids B2B Ingersoll Rand servicing competitors’ products Southwest Airlines hauling freight What is an Adjacency?
6. New Channels Relative to Core Markets Indirect New Channel Partners (IBM PCs in China) What is an Adjacency? Indirect - Internet Shop online at BestBuy and Walmart Direct Dell.com or Own Sales Force
7. New Value Chain Steps Relative to Core Markets Backward Integration Wal-Mart growing its own organic cotton What is an Adjacency? Forward Integration Dell Computers offered in retailers
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9. 10 20 30 40 50 Equipment Sales Installation Share of Revenue in US Portable Air Power Industry ( 2005) Operating Margin 0% 100% The Case of Equipment Sales Parts & Service Integration & Consulting $ Growth Rate Per Annum Identifying Viable Adjacent Opportunities Where do you want to grow?
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14. Marketing Communications Channels Offering Pricing Marketing/Business Strategy Develop Strategies to Exploit/Realize the Key Opportunities